Stepsmart

StepSmart Fitness
Company Customer Competitor

Headquartered in New York, holds 18% Retail - 63% of sales
Not mentioned specifically, but
market share with $630M in sales (2011) in Big box stores, online, retail chains (27%
given market share of the company
a $3.5 B market Mkt. Share)
in US and performance in New
Manufacturer of exercise equipment across Private & Institutional - 7.7% of sales
England district, there is scope of
four categories - cardio, strength, Pvt. clubs, universities, professional sports
taking more mkt. share
technology, small equipment orgn (10% Mkt. Share)
Employs 540 people, with 136 people in Commercial - 29.3% of sales
overall sales division Health clubs - strength & cardio majorly
New CEO Mark Wallace (17% Mkt. Share)
Collaborator Context
Ben Cooper recently appointed as District Sales Director
Health Club Owners for New England region
Big-box Retailers New Regional VP Sales - Caitlin Sheridan
Online e-retailers New England district sales have only increased by 6%
yoy as against 12% for US, BPI target of only 68.6%
achieved
Team under previous Sales Director had poor
management and incoherent business strategy
Ben Cooper charged with turning around sales by 2013
Problem Statement:
How do we optimise the sales team and process to achieve the BPI goal for New England
01 Clarity on goals and business objectives
Good 02 Ability to create rapport and maintain

relationships
StepSmart
salesperson 03 Product knowledge
04 Identify and target the right customers
05 Work ethics
Evaluating the Sales Associates
Sales Buying Actual % of % of BP Cost to Sales per Sales per Active A/c/
Territory Employee Brief
person Power 2011 Sales Achieved Sales Call ($) Account ($) Potential A/c
Knee ailments, strong recurring

Ellis Boston suburbs 1.27 1.08 85% 0.09 2399 9263 51%
customer base
Travels a lot, haven’t updated sales
Barrow CT 1.8 1.08 60% 0.08 1246 6207 53%
figures
Hammond City of Boston 0.8 0.82 103% 0.08 1084 6597 92% Professional, distant
Having personal problems, previous

Foster NH 0.97 0.77 79% 0.09 1577 6185 48% record is good, complaint from
female client
Eastern MA and Does personal work in office time,
Gibbons 0.63 0.72 114% 0.07 1390 9483 31%
RI not aggressive with new clients
VT and Western Focuses on new clients, follow-ups

Concetta 1.08 0.46 43% 0.11 1041 4064 35%
MA on existing clients ignored/delayed
Strong rapport with existing, non
Avery ME 0.94 0.36 38% 0.13 573 2184 54% aggressive with new leads,
hardworking
TOTAL 7.49 5.29 71% 0.09 1275 5912 49%
Improving Sales Team Performance
Salesperson Sales-product Mix Employee Potential Target Goals
Good salesperson, familiar with company process

Ellis More of Cardio and Tech Improve product mix quota to also increase
and still active in field, highest contribution to
products (high mgn) small equipments
district sales
Barrow More of Strength & Smaller Not a very good salesperson, lacks flexibility and Time spent on conversion, regularity in
equipements (low mgn) willingness to learn updates on clients, training hours spent
Hammond Hammond is a good salesperson as he meets all New conversions, cooperation and help to
In line with district mix
targets and quota mix other sales associates
Foster Less share of smaller Had a good track record, potential to be good Needs to be put on probation and advised
equipements salesperson IF can put aside personal issues counselling
New accounts converted, needs to be
Gibbons Biased, have preconceived notions, not a very good
More of Strength and Cardio reprimanded for use of professional
salesperson, as focus on personal business
contacts for personal gains
Good at establishing relationship with clients, clear
Concetta Regular client follow-ups, improve
In line with district mix in her goal and approach, does not focus on smaller
conversions and customer satisfaction
clients
Avery Equal for all 4 categories, with Good rapport and approach with clients, interested Improve sales per call and per account
more of small equipments in work, may be overworked (reduce territory size) - on probation
Accomplishing goals
● Improve evaluation methods
○ BPI target achieved
○ Quality of existing and prospective customers - sales per account, sales per call
○ Customer satisfaction/ feedback
○ Conversion rate and time to convert
● Reorganise territories based on salespersons’ strengths and capabilities
● Improve sales process
○ Streamline process
○ Segment customers based on priority
○ Customise strategy according to the segment
○ Assign the salesperson who would be right for each segment
○ Train salespersons to provide value beyond selling the product
● Assign Ellis to mentor others
● Concetta & Avery has least contribution to District Sales, but both have good potential to
improve, and hence instead of terminating anyone, needs to be trained and realigned

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StepSmart Fitness

Company Customer Competitor

01 Clarity on goals and business objectives

Good 02 Ability to create rapport and maintain

04 Identify and target the right customers

Knee ailments, strong recurring

Having personal problems, previous

VT and Western Focuses on new clients, follow-ups

Good salesperson, familiar with company process

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